Exhibit 11-2 44. If the actual price level in Exhibit 11-2 exceeds the expected
ID: 1228331 • Letter: E
Question
Exhibit 11-2
44. If the actual price level in Exhibit 11-2 exceeds the expected price level, then
a.
equilibrium output might be Y2 in the short run
b.
equilibrium output might be Y1 in the short run
c.
equilibrium output might be Y3 in the short run
d.
potential output is greater than actual output
e.
unemployment is above the natural rate
45. In Exhibit 11-2, an expansionary gap would be represented by the distance
a.
Y2 - Y1
b.
Y3 - Y1
c.
Y2 - Y3
d.
P3 - P1
e.
P2 - P3
46. If the actual price level in Exhibit 11-2 is lower than the expected price level, then
a.
equilibrium output might be Y2 in the short run
b.
equilibrium output might be Y1 in the short run
c.
equilibrium output might be Y3 in the short run
d.
potential output is less than actual output
e.
unemployment is below the natural rate
Exhibit 11-3
48. Consider Exhibit 11-3. In this situation, long-run equilibrium would be established by a(n)
a.
increase of short-run aggregate supply to close the expansionary gap
b.
decrease of short-run aggregate supply to close the expansionary gap
c.
decrease of short-run aggregate supply to close the contractionary gap
d.
increase of short-run aggregate supply to close the contractionary gap
e.
rightward shift of the aggregate demand curve
a.
equilibrium output might be Y2 in the short run
b.
equilibrium output might be Y1 in the short run
c.
equilibrium output might be Y3 in the short run
d.
potential output is greater than actual output
e.
unemployment is above the natural rate
Explanation / Answer
44) Ans is c.
equilibrium output might be Y3 in the short run
45)
Ans is b.
Y3 - Y1
46)Ans is a.
equilibrium output might be Y2 in the short run
48)ANs is
b.
decrease of short-run aggregate supply to close the expansionary gap
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